the contextual marketing imperative

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A Forrester Consulting Thought Leadership Paper Commissioned By SAP hybris October 2015 The Contextual Marketing Imperative The Evolution Of Personalization From Push Messaging To One-To-One Personal Customer Experiences

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Page 1: The Contextual Marketing Imperative

A Forrester Consulting

Thought Leadership Paper

Commissioned By SAP hybris

October 2015

The Contextual MarketingImperativeThe Evolution Of Personalization FromPush Messaging To One-To-One PersonalCustomer Experiences

Page 2: The Contextual Marketing Imperative

Table Of Contents

Executive Summary ...........................................................................................1

Marketing In The Age Of The Customer..........................................................3

Today’s Personalization Strategies Are Missing The Mark..........................5

Contextual Marketing Is Personalization 2.0 ..................................................8

Key Recommendations ...................................................................................10

Appendix A: Methodology ..............................................................................11

Appendix B: Supplemental Material ..............................................................11

Appendix C: Endnotes.....................................................................................11

ABOUT FORRESTER CONSULTINGForrester Consulting provides independent and objective research-basedconsulting to help leaders succeed in their organizations. Ranging in scope from ashort strategy session to custom projects, Forrester’s Consulting services connectyou directly with research analysts who apply expert insight to your specificbusiness challenges. For more information, visit forrester.com/consulting.

© 2015, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited.Information is based on best available resources. Opinions reflect judgment at the time and are subject tochange. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic Impactare trademarks of Forrester Research, Inc. All other trademarks are the property of their respectivecompanies. For additional information, go to www.forrester.com. [1-UKXBKI, 1-UR44NR]

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Executive Summary

Today’s marketing professionals face an unprecedentedchallenge: Create relevant content and offers that stand outin a world where consumers are bombarded with moremarketing messages in more channels than ever before.Marketing strategies that use traditional campaign logic ofdemographics-based segmentation are so prevalent thatthey don’t feel personal or relevant to consumers. Today’sconsumer demands personalized messaging that isn’t justtargeted at “woman, age 25 to 34.” Successful marketersmust use messaging that speaks to the consumers asindividuals, addressing their immediate personalcircumstances and shopping intent.

Brands are defined by customer experiences, andmarketers are striving to give individual customersmemorable experiences that are directly relevant to theircurrent needs.

In order to create these types of customer experiences,marketers must strategically collect and utilize customerdata, including real-time signals of intent, which are typicallynot captured today. However, marketers need to keep inmind that customers expect brands to deliver value inexchange for their personal information. Customers alsobelieve that not all information is fair game, and marketersare being asked to figure out on their own what data theycan safely use to create personalized content and offers.

Mastering this balancing act can be a challenge, especiallysince a real-time view of customer intent is required forcreating relevant messaging that speaks to each customer’sneeds. Unfortunately, most marketers today are workingwith customer data that is decentralized, spread across theorganization in multiple databases that are updated in batchprocesses. To find success, marketers must prioritizeconsolidating data into a single database. But it’s notenough to merely house customer data in one place. Inorder to evolve the marketing strategy from segment-basedpersonalization to contextual marketing, it is essential toleverage real-time signals of intent from this data at themoment when customers choose to interact with the brand.In addition, marketers must also view the customer journeybeyond exposure to marketing content or offers and utilizedata to improve experiences with sales, service, and allcommerce touchpoints.

SAP hybris commissioned Forrester Consulting to evaluatehow marketers are meeting customer preferences forpersonalized experiences. Forrester developed a

hypothesis that consumers see value in relevant contentdelivered at specific moments in their personal customerjourneys, but the personalization strategies marketers usetoday are falling short. Customers give information aboutthemselves with the expectation that doing so will result in abetter, more personalized experience, and marketingprofessionals need to fulfil that agreement by proactivelydelivering value at every touchpoint. In practice, that meansdelivering personalized experiences based on real-timecontextual signals about a customer’s intent.

To explore this concept, in June and July of 2015, Forresterconducted in-depth, quantitative surveys across two distinctgroups: 1,200 consumers and 200 advertising andmarketing professionals at organizations with 500 or moreemployees. Both respondent groups spanned the US,EMEA, and APAC. The surveys revealed that there is adistinct gap between consumers’ expectations ofpersonalized marketing and what marketers are actuallydelivering.

KEY FINDINGS

Forrester’s study yielded four key findings:

› Personalization is a priority for marketers, but theirstrategies are immature. Marketers recognize the valueof personalized marketing: 91% of marketers surveyedare prioritizing improving customer experience throughpersonalization over the next year. However, manymarketers today rely on segmentation to “personalize”experiences. This process needs to evolve into one thatrelies instead on leveraging contextual signals to createindividual real-time personalization based on customerintent – the needs of the customer in the moment whenthey choose to interact with the brand. Only 16% ofmarketers currently have the capability to capturecustomer intent and deliver real-time, behavior-basedmarketing across all channels. In an effort to personalizeacross touchpoints, marketers use an average of 11siloed channels, resulting in inconsistent customerexperiences and a lack of coordination across thosetouchpoints.

› Consumers give personalized marketing efforts lowmarks. Marketers give themselves high marks for theirability to execute cross-channel personalizationstrategies, but consumers feel otherwise. While 66% ofmarketers rated their efforts at personalization as “verygood” or “excellent,” just 31% of consumers reported thatcompanies are consistently delivering personalized,

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cross-channel experiences, and 40% said mostpromotions don’t deliver anything of interest.

› Consumers knowingly supply personal informationbut expect value in exchange. Three-quarters ofconsumers said they are somewhat or very comfortablewith companies using data about them to providepersonalized experiences. In fact, 70% of consumerssurveyed are aware that companies use personalinformation to send them targeted offers. But consumersdon’t surrender this information freely; they expect value,from transactional perks to customer experience benefits.

› Consolidating customer data enables enhancedpersonalization. The majority of marketers havecustomer data spread across a surprising number ofdatabases. This creates challenges in developing a singleview of the customer and makes coordinating marketingacross channels difficult. Of the 22% of marketers with asingle customer database, 70% reported the data theycollected was “very useful” in creating a single view of thecustomer, compared with just 52% of those without aunified database. Further, they are 16% to 30% morelikely to be able to incorporate real-time marketing acrossmultiple channels.

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Marketing In The Age Of TheCustomer

Marketing has drastically evolved over the past few decades.As recently as 20 years ago, marketers had a shortlist ofchannels through which to reach consumers: television, print,display, and radio. Messaging was pushed out into areasonably uncluttered landscape of generally unidentifiedconsumer masses. Today’s marketing strategies are far morecomplex, spanning many channels and customer touchpoints— including email, mobile, online, video, and social — that allplay a significant role in modern marketing. According toForrester Research, by the end of 2015, spending oninteractive media will top $67 billion, which is an 8% growth

over 2014.1 In addition, marketers will grow their digital mediaspend to at least 35% of their total media budget by 2018.2

This heightened level of investment in new channels isreflected in our study: 18 of 19 different marketing methodsplay a significant role in the marketing strategies of over halfof the 200 advertising and marketing professionals surveyedfor this study (see Figure 1).

MAKE IT PERSONAL

The majority of marketing organizations recognize thatgeneric, one-size-fits-all messaging won’t cut it anymore —91% of marketers surveyed are prioritizing improvingcustomer experience through personalization over the nextyear. But this proliferation of personalized, multichannel

FIGURE 1Today’s Marketing Strategies Are Complex And Multi-Channel

Base: 200 advertising and marketing professionals in the US, EMEA, and APACSource: A commissioned study conducted by Forrester Consulting on behalf of SAP hybris, July 2015

“How significant a role does each of the following play in your organization’s marketing strategy?”4 — Somewhat significant 5 — Very significant

Text messages 23% 20%

Promotion of professionally written online reviews 24% 32%

Affiliate marketing 24% 32%

Promotion of consumer-written online reviews 28% 32%

Direct mail offers and promotions 30% 32%

Mobile display advertising 26% 36%

In-store/on-site promotions or offers 26% 36%

Online video 32% 32%

Mobile applications or mobile website 28% 38%

Behavioral targeting advertising 28% 38%

Mobile search 30% 37%

Retargeting (search, display, social) 35% 34%

Paid social network advertising 30% 40%

Online display advertising 28% 42%

Paid search advertising 31% 40%

Email marketing 28% 44%

Social networking presence 26% 46%

Search engine optimization/organic search 29% 45%

Company website 28% 52%

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marketing communications means marketers must find a wayto cut through the noise, creating differentiated, customizedcontent that will stand out from their competitors and resonatewith their target customers and prospects. Given thatcustomers are shopping across channels, marketers need tofocus on coordinating these personalization approachesacross channels and touchpoints.

Unfortunately, the personalization strategy employed bymost marketers isn’t all that strategic. An overwhelmingmajority of marketers employ the “throw it up against thewall and see if it sticks” method of personalization,spreading their “personalization” methods across any andall channels. The average marketer surveyed reportedusing or planning to use 11 channels for contextualmarketing and personalized messages, with no fewer than

80% of respondents using or planning to use any singlechannel. While email marketing and messaging via thecompany website are key staples in current personalizedmarketing strategies, online video, retargeting, andbehavioral targeting advertising will experience a significantuptick in use over the next 12 months (see Figure 2).

GO BEYOND SEGMENTATION

But not all personalization is created equal. Personalizationcan range from the simple segment-based personalizationused today to more advanced tactics that leverage signalsof intent and are coordinated across touchpoints. Themajority (66%) of marketers use demographics to createtargeted content offers, and 44% said they usedemographic categories to create at least some level of

FIGURE 2Personalization Is Everywhere

Base: variable advertising and marketing professionals in the US, EMEA, and APAC at organizations where each marketing channel plays a significant roleSource: A commissioned study conducted by Forrester Consulting on behalf of SAP hybris, July 2015

“What are your plans for using each of these channels for contextual marketing and personalized messages?”Planning to implement in next 12 months Implemented

Promotion of consumer-written online reviews (N = 119) 30% 50%

Text messages (N = 87) 24% 56%

Promotion of professionally written online reviews (N = 113) 36% 45%

Affiliate marketing (N = 112) 32% 51%

Online video (N = 126) 44% 40%

Mobile display advertising (N = 123) 35% 51%

Online display advertising (N = 141) 27% 59%

Direct mail offers and promotions (N = 124) 26% 60%

Search engine optimization/organic search (N = 148) 29% 58%

Paid social network advertising (N = 141) 26% 61%

Retargeting (search, display, social) (N = 137) 39% 49%

Mobile applications or mobile website (N = 134) 28% 60%

Paid search advertising (N = 141) 27% 61%

In-store/on-site promotions or offers (N = 124) 23% 65%

Mobile search (N = 135) 30% 59%

Behavioral targeting advertising (N = 134) 39% 51%

Social networking presence (N = 144) 27% 63%

Email marketing (N = 145) 21% 70%

Company website (N = 160) 24% 68%

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personalization for unidentified prospective customers.However, just half are using more sophisticated methods,such as leveraging data extracted from loyalty programs(52%) or behavior-based data (48%).

Indeed, marketers believe they’re doing a good job. Two-thirds of those surveyed rated their ability to execute acoordinated personalization strategy across channels as“very good” or “excellent.” But in reality, they’re missing themark — just 31% of the 1,200 consumers surveyedreported that companies are consistently deliveringpersonalized, cross-channel experiences.

Using simple segmentation to personalize content andoffers is not enough to meet the expectations of today’sdemanding customer, nor is it enough to stay competitiveand relevant in the marketplace. In order to differentiatetheir brand from their competitors’, marketers need to re-evaluate their personalization strategies. Marketers musttake an individual and contextual approach topersonalization, keeping these questions at the forefront:

› Relevance. Are offers and content correctly tailored tocustomers’ current interests and preferences?

› Appropriateness. Are offers and content personalizedbased upon customers’ real-time actions, intent, orpreferences?

Convenience. Is it easy for customers to respond to orengage with offers and content?

› Frequency. Are the number and frequency of offers andcontent personalized based upon customers’ preferences?

› Timeliness. Are contextually relevant offers and contentbeing presented when the customer has chosen toengage with the brand?

› Consistency. Are personalized offers and contentconsistent across all channels?

Today’s Personalization StrategiesAre Missing The Mark

While marketers may express confidence in theirpersonalization efforts, in reality, they have some very realconcerns. In an age where consumers are bombarded withmessaging from all sides — direct mail, email, text, video,broadcast, online content, and mobile ads — manymarketers worry that their customers will feel overwhelmedand that their content won’t get through (see Figure 3).These fears are not without merit: 44% of consumers saidthey receive too many offers and promotions, and 37%delete most email offers and promotions without readingthem. Furthermore, 40% have unsubscribed or opted outbecause they felt overwhelmed. Consumers are truly in astate of information overload.

FIGURE 3Marketers Fear The Impact Of Information Overload On Personalized Marketing Strategies

Base: 200 advertising and marketing professionals in the US, EMEA, and APACSource: A commissioned study conducted by Forrester Consulting on behalf of SAP hybris, July 2015

“Based on your current personalized marketing strategy, do you have any of the following concerns?”

Customers will unsubscribe from a distributionlist they registered for because the

information they receive isn’t relevant32%

Customers will unsubscribe from a distributionlist they registered for because they

receive too much information32%

Customers will feel overwhelmed by theamount of information they receive 40%

Customers delete most email offers andpromotions without reading them 45%

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Compounding the issue is that a lot of messaging fails toresonate with consumers: 40% said most promotions don’toffer anything of interest. And while email, direct mail, andbanner ads top the list of vehicles marketers use forpersonalized content, consumers say these channels providethe least relevant and personalized content (see Figure 4).

The bottom line is that marketers are falling short inproviding stand-out, personalized, cross-channelexperiences. Just one-quarter of consumers said theconsistency and relevancy of personalized experiencesexceed expectations; only about one-third gave above-average marks in the areas of timeliness, convenience,appropriateness, and frequency. Failure to deliver in theseareas can have significant consequences. For example,among those consumers reporting less-than-satisfactorypersonalized experiences, 61% said they were somewhat ormuch less likely to take advantage of future offers. Themessage to marketers is this: Get your personalizationstrategy right or risk losing business.

CONSUMERS WANT CONTROL

Today’s consumers are savvy — they know companies arecollecting their personal information and using it to market tothem. Seventy percent of consumers are aware thatcompanies use personal information to send them targetedoffers; 64% are aware that companies purchase and usetheir personal information; and 44% are willing to shareinformation about their interests in order to receive morerelevant content and offers. In fact, a large majority ofconsumers (74%) said they are somewhat or verycomfortable with companies using data about them toprovide personalized experiences.

But even though they are comfortable sharing thisinformation, consumers expect to have some level of controlover the types of offers and content they receive, the typeand amount of personal information they share, and thetype and/or frequency of communications they receive (seeFigure 5).

FIGURE 4Personalized Offers And Content Through Most-Common Channels Are Missing The Mark

Base: 1,200 consumers and 200 advertising and marketing professionals in the US, EMEA, and APACSource: A commissioned study conducted by Forrester Consulting on behalf of SAP hybris, July 2015

“How relevant and personalized are the offers andcontent you receive through these channels?”

Relevance Of PersonalizedContent To Consumers

“Do you currently use the followingmethods to extend personalized

experiences to customers?”

Top Vehicles Used By MarketersFor Personalized Content

4 — Somewhat relevant 5 — Very relevant

Traditional mail 25% 15%

Banner ads promoting products youhave viewed or purchased online 27% 20%

Text alerts 27% 21%

Email 29% 21%

Product suggestions on the company/brandwebsite based on what others have purchased 28% 24%

Mobile ads promoting products you haveviewed or purchased on your device 33% 21%

Product suggestions on the company/brandwebsite based on products you have viewed 35% 23%

Product suggestions on the company/brandwebsite based on past purchases 33% 26%

In-store offers via a mobile device 38% 29%

In-store offers based on purchasehistory (loyalty program) 35% 34%

73% Email48% Direct mail48% Banner ads promotingproducts customers haveviewed or purchased online46% Product suggestions onthe company website basedon what others have purchased

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THE INFORMATION-VALUE EXCHANGE

Marketers must recognize that even though there is a widerange of available customer data for creating personalizedcontent and offers, in the eyes of the consumer, not all datais fair game. While consumers are more willing to sharegeneral information like their gender, age, favorite brands,and product preferences, they are less comfortable sharingmore personally identifiable data, such as income, socialmedia account information, and phone number. This can beat odds with companies’ customer data collection practices.Of note, 84% of marketers reported collecting customers’phone numbers, but only 28% of consumers said they’rewilling to share that information (see Figure 6).

FIGURE 5The Customer Expectation Of Control

Base: 1,200 consumers in the US, EMEA, and APACSource: A commissioned study conducted by Forrester Consulting onbehalf of SAP hybris, July 2015

“What are some of the expectations you havewhen engaging with a company?”

Let me specify the type and/orfrequency of communications

from the company30%

Let me determine the type andamount of personal information

I want to share with the company37%

Allow me the ability to controlthe types of offers and

content I receive42%

FIGURE 6Data Collection Practices Versus Consumers’ Willingness To Share Information

Base: 1,200 consumers and 200 advertising and marketing professionals in the US, EMEA, and APACSource: A commissioned study conducted by Forrester Consulting on behalf of SAP hybris, July 2015

Marketers: “ Wh ic h o f the fo l low ing typ es o f cus tom er data do es your o rgan izat ion co l lec t? ”

Consum ers: “ How w ill ing are you to share the fo l low ing typ es o f p ersonal in fo rm at ion w ith acom pany in o rd er to g et o f fers and con tent that are tai lo red to your in teres ts and p references? ”

(Sorted by top 15 types of customer data collected by marketers)

Marital status 62%48%

Social media account information 62%29%

Real-time purchase behavior 64%39%

Work address 64%24%

Behavioral (social media interaction history) 67%31%

Household or personal income 67%29%

Birthdate 72%48%

Product preferences 72%60%

Age 76%58%

Occupation 77%44%

Purchase history 77%43%

Gender 82%64%

Mailing address 82%39%

Email address 84%56%

Phone number 84%28%

Data collected by marketersConsumer willingness toshare information(very/somewhat willing)

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The bottom line is that customers expect companies todeliver value in exchange for supplying personalinformation. While consumers primarily expect perks likediscounts, coupons, and virtual rewards, they also wantcustomer experience-related benefits, like the ability toprovide feedback to the company, access to premiuminformation, and for the company to remember them if theyare a regular customer. In order to provide excellentpersonalized customer experiences, marketingprofessionals need to ensure that the relationships theyhave with their customers aren’t one-sided — they must bebased in value exchange. Brands must supply services thatcustomers find useful in order to collect data on product useand customer affinities, resulting in a sustainable and self-perpetuating exchange. Rather than just pushing messagesto customer segments, based on general demographics, itis imperative that marketers create a continuous cycle ofinsight-driven, contextual interactions.3

Contextual Marketing IsPersonalization 2.0

Contextual marketing is the next stage beyond simplesegment-based personalization. It’s not enough to createpersonalization strategies based on a static view of thecustomer. A contextual marketing approach leverages real-time signals of customer intent to optimize personalizedcontent and deliver engaging experiences. Getting thisformula right can generate significant benefits forcompanies: 66% of consumers reported that personalizedoffers and content has had an impact on their decision topurchase a product or service. So it’s imperative thatmarketers strike the right balance — taking into accountrelevancy, appropriateness, convenience, frequency, timing,and consistency — to ensure that contextually relevantcontent is reaching the consumer.

ONE-STOP SHOP FOR CUSTOMER DATA

To spark customer engagement through a contextualmarketing model, marketers must improve insight intocustomer wants and needs. This can be a challenge,however, when customer data is scattered across multipledata repositories. Marketers are using an average of 15separate systems to house customer data (see Figure 7),making it difficult to get a single view of the customer.

In order to effectively execute contextual marketing acrossmultiple customer touchpoints, marketers cannot act alone.They must work with internal business stakeholders and

technology partners to remove the handicaps that comefrom having decentralized customer data. Consolidatingdata into a single database improves overall customer datausability. Twenty-two percent of marketers we surveyed hadimplemented a single customer database; of thesemarketers, 70% reported the data they collected was “veryuseful” in creating a single view of the customer, comparedwith just 52% of those without a unified database.

FIGURE 7Number Of Customer Data Repositories

Base: 200 advertising and marketing professionals in the US, EMEA, andAPAC(percentages may not total 100 because of rounding)Source: A commissioned study conducted by Forrester Consulting onbehalf of SAP hybris, July 2015

“How many data repositories are used to house allyour customer data, including social, preference,

mobile app, channel touchpoints, CRM, ad andcookie data, the Internet of Things (IoT), and email?”

Don’t know/NA None One to 1011 to 20 21 to 30 More than 30

Vendor-hosted 16% 8% 29% 23% 14% 8%

Agency-hosted 16% 14% 27% 20% 12% 12%

On-premises 12%

2%

33% 25% 19% 9%

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LEVERAGE TECHNOLOGY FOR IMPROVED INSIGHTS

In addition to improving data usability, consolidatingcustomer data can also give marketers an enhancedunderstanding of customer intent (if contextual buyingsignals are captured) and the ability to deliver contentacross channels based on behavior (see Figure 8). It’sworth noting that if contextual data about customers is to beutilized in the moment when customers choose to interact,then this data needs to be accessible in a real-time manner,and this has architectural implications for the technologydeployed. Marketers using a single customer database are16% to 30% more likely to have the capability to incorporatereal-time marketing via email, online, mobile, the call center,and in-store. But moving to a consolidated customerdatabase is just the first step in building a contextualmarketing strategy. In order to truly enable personalizedexperiences that speak to intent within the context of thecustomer journey, companies must invest in technologiesthat enable data management, analysis, and action in realtime. This represents a fundamental shift in marketingpractice: Most marketing technology is designed foroutbound or push marketing, where the timing is chosen bythe marketer.

In the age of the customer, traditional marketing, focused onsegmentation-based campaigns, will no longer suffice.Consumers want personal experiences that exceedexpectations — experiences that are relevant, appropriate,and convenient, delivered how and when they want — andprovide their personal information with the expectation thatthey will receive value in return. In order to deliver,marketers must work with internal stakeholders toconsolidate customer data and leverage individual, real-timesignals of intent to personalize the experience in themoment when the customer chooses to interact. In doingso, marketers are well-positioned to provide contextualexperiences that not only reach their customers, but engagethem as well.

FIGURE 8A Consolidated Database Yields ImprovedCustomer Insights

Base: 43 advertising and marketing professionals in the US, EMEA, andAPAC with a single customer database; 157 without a single customerdatabaseSource: A commissioned study conducted by Forrester Consulting onbehalf of SAP hybris, July 2015

“Which best describes your organization's ability tounderstand customer intent and deliver real-time

marketing based on customer behavior?”(“Currently have capability” responses shown)

Implemented single customer database All others

Email

74%

57%

Onlineactivity

67%

48%

Mobileactivity

56%

38%

Callcenter

51%47%

In-storevisits

44%38%

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Key Recommendations

Consumers demand contextual messaging that speaks to their individual preferences and their current purchaseintent. In order to understand these customer preferences and create relevant customer experiences across channels,marketers must be able to gather and consolidate the appropriate data and then leverage it in the service of thecustomer in real time and consistently across channels and touchpoints. To accomplish this, marketers must work withinternal and external business technology partners that can help provide deep customer insights and do the following:

› Consolidate customer data into a single database, which is the first step in enacting a contextualmarketing strategy. With so much data to understand and so many ways to deliver content and offers to acustomer, it is imperative that the data is clean, consolidated, and ready to use in service of customers across allstages of their ongoing journey. Improving overall customer data usability and gaining real-time insight intocustomer intent allows marketers to evolve their strategy from personalization to contextual marketing, enablingthe creation of more relevant and appropriate marketing communications delivered based on customers’ wantsand needs.

› Invest in technologies that enable data management and analysis, with a bias toward action. Today’smarketers need technology solutions that help them accomplish their goals and efficiently deliver effectivemarketing messages. The ultimate goal is to deliver a strategy that engages the customer with personal, relevantexperiences when and where they want. Robust technology solutions are the key to executing these strategiesthat allow marketers to win, serve, and retain customers. Specifically, this means capturing and acting on real-time signals of intent.

› Redefine personalization as messages that speak to individuals, not segments. Among those consumersreporting less-than-satisfactory personalized experiences, 61% said they were somewhat or much less likely totake advantage of future offers. The message to marketers is this: Get your personalization strategy right or risklosing business. The right data technologies will free up resources and enable marketers to listen to customers atthe individual level, allowing for marketing messages that are truly personal to each customer.

› Deliver value to customers in exchange for supplying personal information. Despite the real concernsabout privacy and protection of personal data, customers are willing to share personal information in exchangefor better experiences. However, marketers must respect customers’ need to have control over interactions andreceive something of value to them in return.

› Take an individual and contextual approach to personalization. Despite marketers feeling that they aresuccessfully delivering personalized marketing campaigns, customers overall feel that they are missing the mark.Customers demand offers and content that are contextual, appropriate, easy to respond to, and relevant to themat the moment they choose to interact. Marketers must uncheck the box that they are accomplishing this, andrefocus their efforts on strategies, tactics, and technology solutions that realign the messages they are deliveringwith today’s customer expectations.

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Appendix A: Methodology

In this study, Forrester conducted two global (US, APAC, and EMEA) online surveys: one of 200 advertising and marketingprofessionals at midlevel to large organizations (500 or more employees) and the other of 1,200 consumers, to examinepersonalized marketing practices and consumer preferences and experiences around contextual offers and content.Respondents were offered a small incentive as a thank you for time spent on the survey. The study began in June 2015 andwas completed in July 2015.

Appendix B: Supplemental Material

RELATED FORRESTER RESEARCH

“Scale And Optimize Customer Engagements With Digital Intelligence,” Forrester Research, Inc., April 22, 2015

“Customer Life-Cycle Marketing Demands New Metrics,” Forrester Research, Inc., February 10, 2015

“Personalization And The Rise Of Individualized Experiences,” Forrester Research, Inc., December 9, 2014

“Predictions 2015: Invest In Customer Insights To Activate Contextual Marketing,” Forrester Research, Inc., November 10,2014

Thomas Husson, “Mobile’s Untapped Value Is In Contextual Data,” Blog For B2C Marketing Professionals, October 27, 2014(http://blogs.forrester.com/thomas_husson/14-10-27-mobiles_untapped_value_is_in_contextual_data)

“Digital Creepiness: How Not To Spook Your Customers,” Forrester Research, Inc., July 7, 2014

“The Power Of Customer Context,” Forrester Research, Inc., April 14, 2014

Appendix C: Endnotes

1 Source: “Predictions 2015: Invest In Customer Insights To Activate Contextual Marketing,” Forrester Research, Inc.,November 10, 2014.2 Source: “The Power Of Customer Context,” Forrester Research, Inc., April 14, 2014.

3 Source: “The Power Of Customer Context,” Forrester Research, Inc., April 14, 2014.